(This article has been updated with a correction.)
UnityPoint Health, a 12-hospital system in West Des Moines, Iowa, reported an increase in operating surplus in 2013, in part due to higher reimbursement from Medicaid and its value-based contracts.
The not-for-profit group saw a 34.5% year-over-year increase (PDF) in operating income during fiscal 2013, which ended Dec. 31. It reported $82.6 million in operating income on $2.8 billion in revenue, compared with $61.4 million on $2.7 billion in revenue during fiscal 2012.
Patient service revenue from Medicaid reimbursement was nearly 16% higher in 2013 than it was the prior year. The system pointed to a 2011 policy change in Iowa that levied an annual tax assessment on certain hospitals to fund Medicaid and obtain federal matching dollars. However, a portion of those funds were returned to hospitals in the form of higher Medicaid reimbursement that is now closer to the cost of providing care.